Yesterday I saw a writeup on net that average broadband speed in NI (Northern Ireland) is 4.1 Mbps while for whole UK it is 3.6Mbps. In india MTNL and BSNL offers top speed of 2 Mbps (when saying top, it is available to retail customers as well in practical). May be it is just my unknowingness, but I have not seens anyone saying that they have seen anything near 1Mbps from airtel, reliance or TATA in India.
Today there was news about Airtel that it is gowing to aggressively reduce its broadband tariff, upto 43% cut in existing. MTNL and BSNL are following lead by further reducing their prices if Airtel actually does it. While there is no one cheaper than BSNL and MTNL, post sell services which forms a major factor for wowing customers could bring Airtel in front while it is already biggest private mobile service provider in India.
Anyway, in this post I wanted to put forth idea of what it could mean for India in future? When we are talking computers and internet, there is still a lot to grow in india. It is mainly people related to software industry and their relatives who are actually buying PCs and using internet. factors contributing to it are -
1. Awareness - people are not aware of what all can be done through internet.
2. Litteracy - only a portion of our population know how to use PC and browse internet. Forget about if they can actually go to website they need and use services provided there.
3. Cost - Average income per person in india is still 3000 per month and this is a news :(.
Now with cost coming down and already plans being laid to reduce PC prices could mean better reach to more people in india. Opportunities it presents -
1. Increase in domestiv market - Internet is fastest way to reach people if you are selling anything - given that people are using it. With internet within reach of more people, sellers will start putting more and more information on internet.
2. Web market - Most of selling happens in india in person. Now people will start buying from net as well and new market areas and competetive ground will imerge from internet.
3. Increase in courier services - As selling will increase, it will require a better supply chain management in india. While DHL and Fedex both collabarating with indian partners, they will be planning to grab their shares.
4. Small website development market - For all above there will be need to develop websites on small scale and cost effective way. Indian young people can gearup to do this by using tools and creating expertise in this area.
While I am myslef is in software line, it sounds a good idea to get in touch with young force who is willing to do point 4 above and that could be a start of small company for serving india:). what do you say?
Tuesday, July 28, 2009
Wednesday, May 20, 2009
Recession over for US?
I was reading this news and it seems to me like, is recession really over, especially for US? Checkout this news where few of top US banks are returning bailout money given to them by governement. and it is not less, they are returning a whooping $45 billion back while total bailout planned by governement was $700 billion.
Why? There could be many reasons but mainly it has been stated that it is to avoid restrictions posed by accepting this bailout money which could hamper their way of operating and is not a very good offer to them. Main restrictions to companies are limiting bonus and pay for their top employees and not to hire workers from outside US. While one will increase unsatisfaction in company, other will force a company to work in a less productive way with more cost.
Critical times ask for extreme measures and highly innovative environment for work. Putting a low money condition in it will hamper the work and insert a demotivation feeling among employees when they should be free to come up with brilliant ideas. These companies might be thinking that by accpeting bailout money, they will be forced to go on a conservative path which is always diverted from an innovation path. While they would be able to recover for sure, company who opt for it, might left out way behind in the race when economic situation is improved. In today's world of cut throat competition, lagging behind could mean closing down sooner or later. So why not keep doing the same and apply same formula which you are confident of getting result. Things have anyway improved from worst and confidence have built up. Sentiments of people have strengthened by many policies which was one of the main factor to keep pulling economy down for a country.
If requests from these banks are accepted, it will surely improve more sentiments and it clearly will be taken as a sign of strength. Do you also think same or of view that it is too early? Please share your thoughts -
Why? There could be many reasons but mainly it has been stated that it is to avoid restrictions posed by accepting this bailout money which could hamper their way of operating and is not a very good offer to them. Main restrictions to companies are limiting bonus and pay for their top employees and not to hire workers from outside US. While one will increase unsatisfaction in company, other will force a company to work in a less productive way with more cost.
Critical times ask for extreme measures and highly innovative environment for work. Putting a low money condition in it will hamper the work and insert a demotivation feeling among employees when they should be free to come up with brilliant ideas. These companies might be thinking that by accpeting bailout money, they will be forced to go on a conservative path which is always diverted from an innovation path. While they would be able to recover for sure, company who opt for it, might left out way behind in the race when economic situation is improved. In today's world of cut throat competition, lagging behind could mean closing down sooner or later. So why not keep doing the same and apply same formula which you are confident of getting result. Things have anyway improved from worst and confidence have built up. Sentiments of people have strengthened by many policies which was one of the main factor to keep pulling economy down for a country.
If requests from these banks are accepted, it will surely improve more sentiments and it clearly will be taken as a sign of strength. Do you also think same or of view that it is too early? Please share your thoughts -
Sunday, March 22, 2009
Satyam Bidding - latest news
Satyam bidding process started last week where request for proposal was sent to many companies who have shown interest in taking over Satyam. Few of these names were - L&T, Spice Group, iGate, Hinduja group and also IBM, HP names were mentioned.
Due to ambiguity of pending class action suits, its impact and current financial situation of company, IBM and HP didn't even proceeded further while iGate and now Hinduja have stepped out of race. It leaves only two front runners - L&T and Spice Group. Both have shown a strong interest as it would be strategically a big step for any of them to acquire a large IT service provider company with presence in more than 50 countries and a good skilled resource base of more than 40,000.
On morning of 23rd March 09 L&T and Spice group have been selected for second phase of bidding. It has not been disclosed who else has qualified or have bid for Satyam. There are expected to be seven players who are shortlisted for second stage of bidding which may show Tech Mehindra also in race..
iGate has issues a statement before that its bidding price will be much lower than current market price. Typical market sentiements are also in line with this feeling and from the time bidding process has started, Satyam share is slidding down on Indian stock exchange. Today it has already gone down by 2.7% of its previous close 43.9 to 42.7 and still going low.
It is expected that Satyam share might trade in range of 30-40 this week because of high risk invovle in this bidding process (for company who will buy Satyam). Rating agency Fitch withdrew its AAA rating for Tech Mahindra citing the risks involved in bidding for the software company
24th March 2009
------------------
Seems like Modi, Spice group chairman, is not happy how things are panned in Satyam bidding process. Name of all players are not revealed and goign forward news are not in public.
Also for bidders now there are mixed news in market. Business standard has reported that there are six bidders and not seven which may include IBM, HP and KKR Private equity investors.
Watch out this space for more news on Satyam Bidding. Please leave your comments on what you think will be share price for bidding and who will be the ONE.
Due to ambiguity of pending class action suits, its impact and current financial situation of company, IBM and HP didn't even proceeded further while iGate and now Hinduja have stepped out of race. It leaves only two front runners - L&T and Spice Group. Both have shown a strong interest as it would be strategically a big step for any of them to acquire a large IT service provider company with presence in more than 50 countries and a good skilled resource base of more than 40,000.
On morning of 23rd March 09 L&T and Spice group have been selected for second phase of bidding. It has not been disclosed who else has qualified or have bid for Satyam. There are expected to be seven players who are shortlisted for second stage of bidding which may show Tech Mehindra also in race..
iGate has issues a statement before that its bidding price will be much lower than current market price. Typical market sentiements are also in line with this feeling and from the time bidding process has started, Satyam share is slidding down on Indian stock exchange. Today it has already gone down by 2.7% of its previous close 43.9 to 42.7 and still going low.
It is expected that Satyam share might trade in range of 30-40 this week because of high risk invovle in this bidding process (for company who will buy Satyam). Rating agency Fitch withdrew its AAA rating for Tech Mahindra citing the risks involved in bidding for the software company
24th March 2009
------------------
Seems like Modi, Spice group chairman, is not happy how things are panned in Satyam bidding process. Name of all players are not revealed and goign forward news are not in public.
Also for bidders now there are mixed news in market. Business standard has reported that there are six bidders and not seven which may include IBM, HP and KKR Private equity investors.
Watch out this space for more news on Satyam Bidding. Please leave your comments on what you think will be share price for bidding and who will be the ONE.
Thursday, February 5, 2009
Murthy, Satyam's new CEO
AS Murthy, a vetreran of Satyam has been appointed as new CEO. Previous CEO Raju was arrested on charge of 7,000 crore fraud in company in Jan, 2009. Mr. Murthy has been associated with Satyam for 15 years and was heading company's global delivery unit.
Though it could be a concern for many that an internal face will not be able to clean Satyam's name in international community (as it is still not clear who are all were invovled in scam), it could be positive for current clients as they will be comfortable dealing with a known person than a strange new face.
Another good news for Satyam is to get sanction of Rs 600 crore of loan from banks for meeting operation expenditure of company. Company board was already putting effort to collect pending receivables from client and along with this loan, company could have enough cash in hand to plan a month wise strategy for improving situation.
What do you think? Will Satyam strike back or go down?
Though it could be a concern for many that an internal face will not be able to clean Satyam's name in international community (as it is still not clear who are all were invovled in scam), it could be positive for current clients as they will be comfortable dealing with a known person than a strange new face.
Another good news for Satyam is to get sanction of Rs 600 crore of loan from banks for meeting operation expenditure of company. Company board was already putting effort to collect pending receivables from client and along with this loan, company could have enough cash in hand to plan a month wise strategy for improving situation.
What do you think? Will Satyam strike back or go down?
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